Modi-trump meeting: India’s Prime Minister Narendra Modi and US President Donald Trump are going to meet today on 13 February. In this meeting, talks are expected between the two leaders on many issues such as global trade, economic policy and bilateral relations. Due to this, close eyes of the stock market are also on this meeting. Sectors such as manufacturing, defense, IT and pharma may be directly affected by this conversation. Let us take a look at what issues can be discussed in the Modi-Trump meeting.
1. Tariff War and ‘China Plus One’ strategy
Market analysts say that the tariff may be at the top of Modi and Trump’s conversation. Trump is imposing tariffs (import duty) on coming from other countries due to his “US First” policy. This remains a matter of concern for Indian exports. India exports a lot of goods to the US in IT, pharma and textile sector, which can affect a new tariff.
Apart from this, what opportunities are being created for India in the trade war of America and China, investors will also have an eye on it. According to the CEO Bhavik Thakkar of Abans Wealth and Investment Managers, “India has already reduced tariffs on many American goods, which can reduce tension. But the real game will be how India becomes an alternative to China!” If India gets more support under the ‘China Plus One’ strategy in this meeting, then electronics and automotive sectors can see a boom!
2. Discussion on cooperation in defense sector
Apart from tariffs, India and America could have a big conversation on defense deals! Trump also wanted India to buy more and more weapons from America. This time too, they can insist on this. If there is a major defense deal between the two countries, then there may be a stir in stocks like HAL, India Dynamics, India Electronics and L&T.
According to Vikas Gupta, CEO of Omniscience, “If the US takes any concrete steps to increase investment in India’s defense sector, it can give a big benefit to the shares of Indian defense companies.”
3. The issue of dumping cheap goods from China
In the meeting of Trump and Modi, the issue of dumping cheap goods from China may also remain shadow. Domestic companies are suffering a major loss due to floods of Chinese goods in India. In this meeting of Modi-Trump, if it is agreed to stop dumping of cheap goods from China, then Indian manufacturing companies will directly benefit! Hemant Shah, Principal Officer of Seven Islands, says, “If any concrete steps are taken to prevent dumping, Indian manufacturing sector companies may get strengthened.”
4. IT and Pharma Sector of India
The fourth issue in the conversation may be about the IT and Pharma sector. America is a big market for India’s IT and pharma companies. But the Trump administration’s H-1B visa policies and regulatory changes can become a matter of concern for these sectors. PM Modi would like the policies of Trump’s new term, what kind of obstruction should be created in America for Indian companies. Therefore, this can also be talked about in the meeting. Vikas Guptan said that “If the US makes easy rules for the Indian IT and Pharma sector, it will increase the trust of investors.”
5. Dollar vs Local Currency Settlement
In the end Trump may insist on strengthening the US dollar in this meeting. The BRICS countries recently proposed to make a separate currency instead of US dollars and trade it. Trump has already expressed concern over the issue, and in this meeting the US may expect a clear stand from India. India’s focus has increased on trade in Indian rupees from Russia and China. If there is talks between the two leaders on this issue, its effect can be seen on the currency market.
Also read- Paytm Money has given a fine of ₹ 45.5 lakh to settle SEBI allegations, know the whole matter
Disclaimer: The ideas and investment advice given by experts/brokerage firms on Moneycontrol are their own, not the website and its management. Moneycontrol advises users to consult a certified expert before making any investment decision.